What you need to know before the open February 27, 2014 Caution’s in the air this morning as nervousness around the deteriorating situation in Ukraine sees investors risk averse. Markets are, therefore, expected to open lower. US markets stayed around all-time highs last night, although there was some notably treasuries buying. Markets will focus on Janet Yellen’s testimony this afternoon, which’ll shed some light on the [...]
BAT enjoys profit rise despite tough trading conditions February 27, 2014 Tobacco giant British American Tobacco (BAT) has reported a rise in profits before tax of £207m to £5.7bn for the year ended 31 December. The group's revenue was up four per cent at constant rates of exchange while basic earnings per share rose by five per cent to 205.4p. BAT saw a fall in of [...]
£8.2bn loss confirms RBS’s uphill struggle February 27, 2014 As expected, RBS has reported big losses this morning, as compensation and bad loans continued to plague the lender last year. But results were even worse than expected, with a pre-tax loss of £8.2bn. Analysts had expected a loss of nearer £7bn. Deutsche Bank forecast £6.6bn. Shares have slumped nine per cent on the news, [...]
RSA confirms £775m rights issue as losses increase February 27, 2014 UK insurer RSA has confirmed it’ll launch a £775m rights issue to bolster its capital position. Following the £200m fraud scandal in its Irish business at the end of last year, former RBS chief executive Stephen Hester (pictured) has been working to move the besieged firm forward. Hester said this morning that the firm’s 2013 [...]
Standard Life warns independence may see it quit Scotland February 27, 2014 Insurance giant Standard Life has become the first major Scottish business to warn that it may relocate its operations to England should Scotland vote for independence. In the company's annual report for 2013, chairman Gerry Grimstone said: We have been based in Scotland for 189 years and we are very proud of our heritage. Scotland [...]
Any Other Business – 27/2 February 27, 2014 JOHN Roberts, chief exec of AO.com likes a good party. The Christmas dos at his white goods empire are notoriously lavish (free champagne, cocktails, beer and Jäger we hear). Roberts claims he’s always thrown a good festive disco, even when the company was much smaller. Well, with that information to hand we should all be [...]
Deteriorating situation in Ukraine unnerves Asian markets February 27, 2014 Asian markets are reacting nervously to the deteriorating situation in Ukraine as investors look to safer prospects, such as US treasuries. The prospect of an escalation of the troubles in Ukraine would prove a damaging one for some emerging markets. Concerns have been heightened after Russian President Vladimir Putin instructed the military to perform drills [...]
RBS still years from recovery February 26, 2014 ■ Bank offloads £1bn stake in Direct Line■ Set to slash costs as its losses mount■ No return to profit expected until 2018 RBS will today launch a new plan to slash costs and re-focus on the UK in a bid to convince markets and the government it is at last on the path to [...]
Freezer King bags £542m as AO.com soars February 26, 2014 AO WORLD founder John Roberts is sitting on cash and shares worth around £542m after the online white goods empire he founded 14 years ago made a grand entrance onto the London Stock Exchange yesterday, with shares leaping 32 per cent. Roberts has reduced his 40 per cent stake to 28.6 per cent, the company [...]
Fund managers under attack from hyper-activist investor Elliott Management February 26, 2014 US ACTIVIST investor Elliott Management flexed its muscles yesterday by taking large stakes in two of Britain’s most prominent fund management groups. The group took its shareholding in F&C Asset Management to 11 per cent while building its ownership of Alliance Trust to 10 per cent. The move will unnerve both companies given Elliott’s aggressive [...]